PASHA BANK ANNUAL REPOT 2024

EXPLANATIONS ON ACCOUNTING POLICIES (Continued) XXIII. EXPLANATIONS ON EARNINGS PER SHARE Earnings per share are calculated by dividing net profit for the year to the weighted average number of shares outstanding during the period concerned. Earnings per share disclosed in the income statement are calculated by dividing net profit for the year to the weighted average capital outstanding during the period concerned. In Türkiye, companies can increase their share capital by making a pro-rata distribution of shares (“bonus shares”) to existing shareholders from retained earnings. For the purpose of earnings per share computations, the weighted average number of shares outstanding during the year has been adjusted in respect to bonus shares issued without a corresponding change in resources by giving them a retroactive effect for the year in which they were issued and for each earlier period. Where the number of outstanding shares increase due to distribution of bonus shares after the balance sheet date but before the release of the financial statements, earnings per share computations are performed based on the revised average number of shares. 31 December 2024 31 December 2023 Net Period Profit 462,873 525,002 Weighted Average Number of Ordinary Shares Issued (Thousands) 500,000 500,000 Profit per Share 0.9257 1.0500 XXIV. EXPLANATIONS ON RELATED PARTIES Shareholders with significant influence, key management personnel, and members of the board of directors, together with their families and entities they control or are affiliated with, are considered related parties within the scope of the “Related Party Disclosures” standard (“TAS 24”). XXV. EXPLANATIONS ON CASH AND CASH EQUIVALENTS For the purposes of the preparation of statement of cash flows, “Cash” includes cash, effectives, and cash in transit, purchased cheques and demand deposits including balances with the Central Bank; and “Cash equivalents” include interbank money market placements and time deposits at banks with original maturity periods of less than three months. XXVI. EXPLANATIONS ON SEGMENT REPORTING Information on operational fields which are determined in accordance with the Bank’s organizational and internal reporting structure and the requirements of “Turkish Financial Reporting Standards on Segment Reporting” (“TFRS 8”) is disclosed in Section Four. XXVII. RECLASSIFICATIONS In order to comply with the presentation of the current period financial statements, comparative information is reclassed, and restated if necessary. XXVIII. EXPLANATIONS ON OTHER MATTERS None. SECTION FOUR INFORMATION RELATED TO FINANCIAL POSITION AND RISK MANAGEMENT I. INFORMATION ABOUT SHAREHOLDERS’ EQUITY ITEMS Equity capital amount and capital adequacy standard ratio is calculated in accordance with the “Regulation on Measurement and Assessment of Capital Adequacy Ratios of Banks” and “Regulation on Equities of Banks”. The current period equity amount of the Bank is TL 2,443,936 while its capital adequacy standard ratio is 24.11% as of 31 December 2024. The capital adequacy ratio of the Bank is far beyond the minimum rate determined by the related legislation (31 December 2023 - shareholders’ equity TL 1,960,472 capital adequacy ratio 23.79%). 155 Financial Information and Risk Management Review PASHA Yatırım Bankası A.Ş. Notes to the Unconsolidated Financial Statements As of and for the Year Ended 31 December 2024 (Continued) (Convenience translation of publicly announced financial statements originally issued in Turkish) (Amounts are expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)